Westpac Institutional Bank, in collaboration with Chainlink and Imperium Markets, has embarked on a groundbreaking initiative known as Project Acacia. This project aims to revolutionize the settlement of tokenized assets through blockchain technology, with the Chainlink Runtime Environment playing a vital role in orchestrating secure Delivery vs. Payment (DvP) settlement across blockchain markets and Australia’s PayTo domestic payments system.
The Reserve Bank of Australia, in partnership with the Digital Finance CRC (DFCRC), has estimated that tokenization could result in cost savings of up to AUD $12 billion annually in Australian markets. Building upon this potential, Project Acacia builds on the RBA’s six-month pilot program, which involved 24 industry participants conducting real-money transactions and proof-of-concept simulations across various asset classes.
One of the key aspects of Project Acacia is Westpac’s extension of its PayTo infrastructure to facilitate the settlement and clearing of large wholesale banking payments required for tokenized asset transactions. PayTo, introduced by Westpac in 2024, offers a digital-first alternative to direct debit payments, enabling real-time transactions with enhanced visibility and control for customers. By leveraging banks’ existing exchange settlement accounts with the RBA, PayTo ensures secure and efficient transaction settlement while providing rich transaction data and secure storage capabilities.
Jeff Byrne, Managing Director of Global Transaction Services at Westpac Institutional Bank, emphasized the importance of exploring digital currencies in a real-world setting while providing customers with safe and secure payment options. This initiative not only enhances Westpac’s payment capabilities but also paves the way for the adoption of emerging technologies such as asset tokenization.
In addition to advancing settlement capabilities, Project Acacia allows Westpac to test post-quantum cryptography in financial systems, utilizing advanced encryption algorithms designed to withstand potential quantum computer attacks. With a long-term equity investment in QuintessenceLabs, an Australian cybersecurity company specializing in quantum-enhanced cryptography, Westpac is at the forefront of developing secure and resilient payment solutions for the future.
The collaboration between Westpac, Chainlink, and Imperium Markets underscores the accelerating pace of blockchain infrastructure development in the global financial sector. Chainlink’s partnerships with major financial institutions, such as Abu Dhabi Global Market, highlight the growing interest in tokenizing real-world assets within regulated environments. According to RedStone’s market analysis, the tokenized real-world assets market has surged to $24.31 billion by June 2025, driven by the increasing adoption of blockchain technology and digital assets.
Despite some Australian banks’ cautious approach towards crypto platforms, Project Acacia’s focus on regulated institutional applications could yield significant economic benefits, potentially generating AU$19 billion annually in economic gains. By pioneering real-money settlement testing on third-party platforms, Project Acacia sets a new standard for digital finance innovation in Australia.
In conclusion, Westpac’s collaboration with Chainlink and Imperium Markets through Project Acacia marks a significant milestone in the adoption of blockchain technology for tokenized asset settlement. This innovative initiative not only showcases Australia’s commitment to embracing digital finance but also positions the country as a leader in exploring the potential of blockchain technology in the financial sector.